Market Outlook for 2025: Trends and insight

Explore the detailed Market Outlook for 2025, highlighting key trends, emerging opportunities, and growth insights across various industries.

1. WRIGHT
MARKET OUTLOOK 2025

2. CAUTIOUS OPTIMISM
Exports and Trade:
IT services & pharma to gain as global trade stabilizes.
Infrastructure Spending:
Government infrastructure investments to boost cement, industrials, and construction.
H2 Turnaround
Government infrastructure investments to boost cement, industrials, and construction.
Macroeconomic Tailwinds:
Declining inflation, favorable commodity prices, and potential rate cuts could boost
profitability and demand.
The second half of 2025 holds great promise as recovery drivers take eect:
Revenue Growth:
YoY growth ~6%, EBITDA may decline by 1.6%
Top Performers:
Private banks, pipes, EMS, liquor, and auto manufacturers are bright spots.
Challenging Segments:
Urban consumption likely constrained due to inflation, stagnant wages, and reduced spending.
Q1 expected to face headwinds from tight liquidity, high borrowing costs, and subdued corporate earnings.
A Challenging Start
Urban consumption likely constrained due to inflation, stagnant wages, and reduced spending.
Revenue Growth:
YoY growth ~6%, EBITDA may decline by 1.6%
Top Performers:
Private banks, pipes, EMS, liquor, and auto manufacturers are bright spots.

3. GLOBAL RISKS
US and Trump:
China’s Role:
Monetary Tightening and Dollar
Strength:
Potential Taris on China could disrupt global supply chains,
raising prices for emerging markets like India.
Hawkish Fed in H1 2025 & strong dollar may challenge emerging
markets.
China’s muted recovery may boost global trade in 2025 if
they shift to fiscal spending.
Trade and Emerging Markets:
Deglobalization may create opportunities for India, but
hurt exports.

4. DOMESTIC GROWTH DRIVERS
Focus on transportation, renewable energy, and digital infrastructure.
Maharashtra & Tamil Nadu leading the way with increased infrastructure
spending through Public-Private Partnerships bPPPs).
Government Capex
Growing in manufacturing & renewable energy. PLI scheme boosting
electronics & EV production. High borrowing costs and weak global demand
remain headwinds.
Private Sector Capex
India aims for 500 GW by 2030. Solar, wind, and green hydrogen are key areas
of focus with strong public and private sector support.
Renewable Energy Focus

5. CORPORATE EARNINGS IN 2025
Revenue:
Mid-single digit growth expected. Driven by domestic consumption,
infrastructure, and exports (healthcare & agri-chemicals). Rural demand
and policies supporting pipes & building materials will also
contribute.
Monetary Tightening and Dollar Strength:
Inflation and high borrowing costs will pressure margins in H1 2025.
Easing commodity prices and normalized supply chains should improve
margins in H2.
Trade and Emerging Markets:
Strong growth for private banks, EMS, and healthcare. Autos and consumer
durables may face challenges due to weak urban consumption.

6. Consumption:
Banking & Financial Services:
CORPORATE EARNINGS IN 2025
Rural demand will outpace urban, driven by subsidies and good monsoons.
FMCG margins may be squeezed by input costs, but price hikes could help.
Consumer durables and e-commerce are expected to grow, particularly during the
festive season.
Private banks are well-positioned for growth despite moderate credit expansion.
Insurance (both life and general) is an aractive defensive play due to rising
penetration and profitability.

7. Capex-Linked Sectors:
Pharma exports will see long-term growth, driven by generics and FDA approvals.
Diagnostics sector has growth potential thanks to rising health awareness and
expanding healthcare infrastructure.
Healthcare:
SECTORAL OUTLOOK FOR 2025
Cement demand is rising due to consolidation and government spending, but
execution risks remain.
Capital goods orders are boosted by renewable energy and infrastructure
investments.

8. Growth driven by AI and automation, supporting digital transformation.
High valuations and global uncertainty may limit upside.
Information Technology:
Luxury goods and e-commerce will benefit from rising incomes and digital
Inflation may impact mid-tier spending.
Consumption (Discretionary):
SECTORAL OUTLOOK FOR 2025
Government targets for solar, wind, and hydrogen are driving investments.
Private sector involvement in baery manufacturing and grid
modernization is boosting the sector.
Renewable Energy:

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